Sure! Let's analyze the data from Alena Company's books step-by-step to answer the questions about the assets to be reported.
### Step 1: Identify Current Assets
Current assets are those that are expected to be converted into cash, sold, or consumed within one year. From the given data, the current assets are:
- Notes Receivable: 244,000
- Prepaid Expense: 56,700
- Accounts Receivable: 56,000
- Inventory: 157,840
- Cash: 77,000
#### Calculation:
[tex]\[ \text{Current Assets} = \text{Notes Receivable} + \text{Prepaid Expense} + \text{Accounts Receivable} + \text{Inventory} + \text{Cash} \][/tex]
[tex]\[ = 244,000 + 56,700 + 56,000 + 157,840 + 77,000 \][/tex]
[tex]\[ = 591,540 \][/tex]
Answer to Question 1:
The current assets to be reported in the SPF are [tex]$591,540.
### Step 2: Identify Non-Current Assets
Non-current assets, also known as fixed assets or long-term assets, are those which will provide benefits for more than one year. From the given data, the non-current assets are:
- Property, Plant, and Equipment: 750,000
- Intangible Assets: 124,500
- Accumulated Depreciation (this is a contra asset account and should be subtracted): 100,000
#### Calculation:
\[ \text{Non-Current Assets} = \text{Property, Plant, and Equipment} + \text{Intangible Assets} - \text{Accumulated Depreciation} \]
\[ = 750,000 + 124,500 - 100,000 \]
\[ = 774,500 \]
Answer to Question 2:
The non-current assets to be reported are $[/tex]774,500.
### Step 3: Calculate Total Assets
Total assets are the sum of current assets and non-current assets.
#### Calculation:
[tex]\[ \text{Total Assets} = \text{Current Assets} + \text{Non-Current Assets} \][/tex]
[tex]\[ = 591,540 + 774,500 \][/tex]
[tex]\[ = 1,366,040 \][/tex]
Answer to Question 3:
The total assets to be reported are $1,366,040.
By following these steps, we have identified and calculated the amounts of current assets, non-current assets, and total assets for Alena Company to be reported in the Statement of Financial Position.
